hi, everybody. welcome to the "the wall street journal report with maria bartiromo." i'm maria bartiromo. americans retirement crisis. are you saving enough to make yo golden years shine? our conversation withne of our country's most important voices on retirement. and many call the most important banker in the world, jamie dimon. on the economy, housing and why he's hopeful. >> america has unbelievable talent. >> ten years later, is no child left behind working? has it improved the education system? a report are card on a controversial program and whether charter schools can make a difference. the "the wall street journal report with maria bartiromo" begins right now. now ria bartiromo.

>> here's what is making news as we head in to a new week on wall street. earning season is underway again with a mixed picture painted by two companies. it began with the traditional of dow component alcoa going first. they met expectations though though the revenue was better than expected. jpmorgan chase met expectatioio but the revenues fell short. i will be talking to the company's ceo jamie dienl coming up in the program. the markets got off to a a sizzling start on the new year. by tuesday the dow reached a five-month high h and it contind up later in the week. by thursday the s&p 500 had the best beginning of the year since 2006, mostly onasing worries in europe. the markets fell on friday. retail sales barely rose in deps up 1/10th of a% and less than expected. the disappointing december number was due to heavy discounting in the holiday season.. the federal reserve say if the

economy continueses to improve the beige book, the study of regional ecoconomies showed moderate growth which has been improvingable isly in the manufacturing sector don't worry you w will be able buy twinkies andd wonder bread. hostess brands is declaring bankruptcy. they will contntinue to operate normally during chapter 11 proceedings. roger ferguson is the former vice chairman of the federal reserve and current ceo of tiaa-cref, leading retire temperature services provider. he says america is facing a retirement crisis and he is passionate advocate for retirement education. always wonderful to have you on the program. >> thank you for inviting me back. >> let me get your take on the broad economy. it feels like we have been seeing improvement. what's your take on the u.s. and global story right now? >> the way with it feelss in substance the way it is. we are seeing a little improvement. as you probably knoww the fed's beige book came out receny and

there were signs of improvement there. on the other hand there have been some disappointments. are retail sales growth was lower than expected. jobless claims are not showing consistent improvement week over week. i'd say where we are is where we have been for some time, uneven, slow, bumpy, recovery, but a recovery, nonetheless. >> momost people are looooking europe as this wild card. do you see a decoupling, i hate to said that because we thought we were and realized we weren't in 2008 when the whole world was -- so.s. versus europe is that the wild card, the impact of europe? >> thehere is uncerinty for sure. already elements of decoupling. u.s. seems to be movg ahead and europe seems to be glowing down. their industrial production may be slowing. obviously what is happening in europe is the overhang of the debt crisis.

before we put too much weight on the decoupling story we have to recognize markets are global. so uncertainty in europe can swing to the u.s. market. while it may show a little decoupling markets are not. the final point is europe is an important source of revenue for a number of multinational headquarters here in the u.s. >> let's talk about retirement. when you look at what is going on in the european countries and recognize whahat debt has done these countries, really strapping them and then you look at the retirement situation. it is a c crisis in the u.s., isn't it? >> there are three things that are iving it. one is demographics. baby boomers are getting older. last year was the first time baby boomers started to turn 65, the usual retirement age. there is a baby boomer turninin 65 every seven or eight seconds. all of this is takg place just as we are dealing with a

financial crisi foror sure. and the third is that retirement itself is changing. demographicsren't just that people are aging but people will be living longer in what we think of as retirement. if you put it together it is a toxic brew for people. >> it really is. it is scary. do you t think the old ways of doing things are appropriate toy? for example the 401(k)? i'm one of these people, i want to take it to the max and do the the match with my company. i sock away as much as i can every two weeks if i can sometimes it is more than other weeks. a lot of people don't do that. >> you have the right attitude. >> is the 401(k) still appropriate for retirement? it. >> was never meant to be the primary retirement tool in america. it evolved that way as businesses pulled back on their defined benefits plans. it fits in some ways that it is portable and tailored to the dividual. on the other hand, many folks

don'tt use it the right way. you do. putting in as much as you can. first signing up. many don't participate. taking advantage of the match. getting guidance on how much to save a having a good asset allocation and most importantly don't look at that as aool of money you can pull out when you need it. >> what does the u.s. system need to do today to adapt to all of these change ccans, the demographics, et cetera. >> there are number of things. we have to rethink, repair and restart the retirement system recognizing the individual approach is helpful. we need to make sure it is a tirement sysystem by giving people a chance to have retirement for life throughgh a annuity option and making sure more participate through automatic enrollment. it needs to have an element of nancial literacy. a point we are passionate about. we have to make sure they take advantage of the right amount of diverse case and give them an

example of what they will get at the nend termsof of payout depending on what they save. >>what do you think individuals need to be doing to ensure a secure retirement? are there things they should be thinking about on a day-to-day, month-to-mth basis? >> save, save, save. >> pay yourself first. >> pay yourself first. >> get over that $3 a day cup of coffee if you are a young person and by the timime you are 65 th is $33,000. save $25 extra a week if you are 25 years old and with a reasonable return, you have $165,000 in your account. so savave, save, save. second thing, think broadly out a long-term strategy. do not get swayed by the most recent headline. do not jump in and out of the markets s or try to time. your strategy should reflect who you arere. holongo you expect to live? probably longer than you may

imagine. what your job prospects are and risk appetite is. it has to start with partipating in saving. if you don't do tha you can't do the other things. >> wonderful to see you. >> thank you for having m me on >> roger ferguson of tiaa-cref. he is the banker overseeing $3 trillion in assets. jpmorgan chase dooim jamie dimon will be with us and offer his view of wall street and why he is bullish on the u.s. and ten years since no child left behind became the law of the land aree we educating our way y to a better economy? we'll be right back. [ male announcer ] the inspiring story of how a shipping giantt can befriend a forest may seem like the stf of fairy tales. but if you take away the faces on the trees... take away the pixie dust. take away the siing animals,s, anand the storybook narrator..

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the head of the nation's largest bank says housg has bottomed. he says he sees brighter times for the united states. at a a conference this week i spoke to the bank's ceo about where he s sees the economy head in the new year. >> i think in general the u.s. economy is a mild recovery but seems to be broad and strengening. if you look at t sectors, small business, consumer, for the most part they are better than a year ago. we even think that housing is at or near the bottom if you look

at rentntal supply and demand, are hoping to have a good economy and jobs. >> you speak to a lot of ceos. are youu seeing backlog in term of plans to do dealsls iipo, wh does your pipeline at jpmorgan chase look like? >> companies have a lot of money and wherewithal. like anyonone else they worry. they worry about the world, themselves they think they are okayay. >> even wlt better data the bank stocks have been under pressure. your company lost $40 billion in market value in the last year. toward want to know what will turn it around. turnrn to rope. what is your recommendation to fix the euro debt crisis and get this volatili out of the -- >> europe is kind of a unique thing. i'd like to see europsolvee its problems. i think the european union a an

euro itself is a great accomplishment of mankd. any cotry that says we want to see all countries be responsible and accurate. to do that it is retirement, work hours, coetitiveness, et cetera. i think it is fair for them to say it is a government issue. i think it is fair for the government to say the ecb needs to provivide liquidity for italn sovereign debt. they have a lot of issues to work out and need to be done almost together and sosoon. i think the longer you wait the higher the risk if something goes wrong that you can't control. >> what is your view on what they have done so far in terms of the lending facility. >> the last thingthey did three or four weeks ago where they expanded the amount of clout to be used and ifif you have the clclout you can borrow three yes at low rates. i think it is -- it removed a lot of issues about liqiquidityt

the banks. that issue was taken off the table by o one move. the banks have been asked to raise capital and to do that they may have to sell assets and do certain things but one of the big ones was removed. >> let me ge your take on the stress test. jpmorgan chase submitted its plan to the federal reserve. how does thank you do they come out on this. >> i don't agre with all of it but i agree with the stress test. you should be able to look at jp morgan and say can you handle massive stress. it is 13%% unemployment, home prices down 20%, equity markets do 50%, a catastrophe in the markets and europes and yes we can handle that and be well above the 5% tier one required. i'm hoping what it shows is the american banks, maybe an exception or tw are well capitalized can handle extreme stress and one day hope to take it off the table. >> you come out of the fed, all

is fine and you have plenty capital, do you raise your dividend? >> it is a board level decision. we raised it last week and put it at a dollar. we tol the world we'd expect t o have regular, not huge increases but as a normal course. that is a small capitalecision relative to other capital decisions. last year we brought back $8 billion in stock. we think we might do something like that this year. we hope to do that or more in 2012. we are not the people that buy stock at any price. we prefer to spend the money when the stock is cheaput may not be cheap by the time we have the opopportunity to do that. >> do you expect the pressure to continue on markets in 2012? toward are nervous. >> toward may be surprised.d. when they are nervous, six months later they can open up wide. if you are a corporation you can easily rai money.

we are dodoing$10 billion mortgages a month. we are doing $10 billion a month. doing a lot of credit cards, small business loans up 70% year to year. middle market loans as of september, up 18% year over year. we have seen rea under lying growth. some are market share gains. competitors are seeing similar numbers. >> you are the only ceo in your space to come out and talk about the demonizing of the industry. do you think the pressure on the industryry would be different o less under a different administration? >> i'm not sure there should be pressure in the industry at all, whether republican or democrat. i wish they would have a rational collaboration on how to make the country grow faster and have jobs and more opportunity. we haven't had that. i don't know what is going to happen after the election. americica has got unbelievable talents and strengths. we should be talking about those

and making it even better and growing off of those to make the country grow again. >> are you going to support obama? >> i don't publicly support any candidates. i'm not allowed to. i'm barely aa democrat. i will see when the time comes and i won't tell you. >> jamie, good to have you on the program. >> thankou. up next on the "wall street journal" report. testing and teaching the students of the >> helello. h heyhandsome.

ago this week in january, 2002, president bush sign td to law the sweeping education legislation known as no child left behind. intrododucing g an era of incre studenent testing and increased teacher accountability. a decade removed, how are we doing when it comes to providing equal, quality education to students of all income brackets? joining me is eva moskowitz, te

founder of the success academy charter schools in new york city. good to see you. thank you for joining us. >> thankou for having me. >> this anniversaryf no child left behind is an opportunity to lookok at the playing field and how children of lower income brackets are doing and how we, as a country, are providing in terms of education. how are we doing? >> all of the international studies indicate the country is not doing well. even our highest-perfororming students are doing worse than many other countries lowest performing students. >> why? >> we have a crisis on our hands. we have been delivering education the same way for a half century, and we have to move in to the 21st century. we have to haveve more rigorous standards, more accountability, while emphasizing critical thinking. >> i feel like we have beenn talking about account a long time. why aren't we getting it? you operate nine schools in new york city. how does the charter school

approach look at tthings? is it better than the trtraditional neighborhood schos in terms of the gap. >> we havee a lot of freedom around teaching and learning. we don't have a 600-page teach evers/union contract that governs every detail of the school. we can say here's how we a are going to organize our day and time and we hirehe best andf for some reason wehave a teacher who's not cut out to be a teacher we m.i.a. say to them, you need to find a different profession because at the end of the day the most important thing about a school is whether you have a highly efeffective teach and don't forget highly effective principal. >> in terms of getting that teacher and principal, you have to have flexibility. do you think one of the biggest problems is the teachers unio. >> it is pt of the the problem but you have bureaucratic management.

you have the worst o of both worlds. hugeistricts that are far removed fromhe schools. i think the teachers union contracts are really a problem. they don't allow for the kind of flexibility. let me give you an example. in new york city, we have a teachers union contract that gives only one 50-minute prep period. at our schools we give teachers two tohree prep periods a day and in excnge we expect them to be super well repaired to the teach the lesson. >> your teachers have exhibited super scores. are standardized tests future predictors ofacademic success? >> i would argue they are. i wouldn't want a school that only focused on testing because they are a low bar. you want to teach kids to think critically, , mathically, scientifically. you want them to be great writers but if kids don't do well on the test they will noto

do well in life. >> what about your board. tell me about the role of the private sector in thehe charter schools. >> we need the private sectors help. they are doioing well. we have a lot to learn on how to organize and structure schools and we are grateful for the generosity, the charter movement in new york statate doesn't get ual funding. the philanthropic community has allowed us to start up schools and innovate. >> the is another group that says it is impacting things and we don't like it in our neighborhood. you are going beyond harlem in new york and you have gotten pushback from parents in some areas. basically they are saying charter s schools take away fro traditional neighborhood schools. what do you say to that? >> it is often not the parents. it is the teachers union. they hire ororganizations like acorn, they actually rent protesters. one has to be careful about where the opposition is coming

from, but we had 9,000 parents apply to our schools last year for 900 spots.. so we clearly have community support. >> the numbers tell the story right. there eva, sounds great. thank you for all that you are doing. appreciate your time. >> thank you. >> we will take a break and look at the news that will have an impact on your money and in happy hour news, america has bellied up to the bar and spoken. is there a new king of beer? the right insurance at the right price. the "name your price" ol, only from progressive. ready, aim, save! grrr! ooh, i forgot my phone! the "name your price" to. now available on your phone. get a free quote today. impact wool exports from new zealand,

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for more on our show and our guests, check out our website and follow me o on twitter and google+. look for @maria bartiromo. now look at the stories that may impact your money this week. monday the observance of martin luther king junior's birthday. all u.s. markets are closed. aa busy week for earnings seaso though. fourth quarter results from the financials on top of jpmorgan chase's numbers on friday, bana of america, american express, wells fargo a and citigroup. microsoft, intel, google and general electric will also be reporting their fofourth quarte. wednesday a look at inflation with the release of the producer price index. that tracks the cost of goods at the wholesale level. on thursday, the consumer price index is out. see if there is inflation at the cash register. >> the king of beer tes a tumble for two decades. there is a new number two. coors light outsold budweiser by

1.5 million bottles to be the second best selling bud in america. anuser-busch has seen volume declines in the last few years as customers are opting for light and lower calorie options. last year was the seventh straight year of growth for coors light brand. bottoms up. that will do it for us. thank you for joining us each week with. keep it right here where wall street meets main street. have a great week, everybody. i will see you next ekend. ny grs before me,

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